Refile: NetApp Q1 beats estimates on AI demand; raises FY27 outlook

NetApp

02/09/2026 21:15

Corrects typo in the headline

Overview
U.S. data infrastructure firm's fiscal Q1 revenue grew 30%, beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Company raised full-year 2027 revenue and EPS guidance

Outlook
NetApp sees Q2 net revenues between $2.025 bln and $2.175 bln
Company expects Q2 non-GAAP EPS of $2.54 to $2.64
NetApp raises FY27 net revenue outlook to $7.975 bln-$8.225 bln

Result Drivers
ALL-FLASH ARRAY GROWTH - Record all-flash array net revenue rose 47% year-over-year, helping drive overall revenue growth
PUBLIC CLOUD SEGMENT - Public Cloud net revenue grew 28% year-over-year to a record $206 mln
AI AND MULTI-CLOUD DEMAND - CEO said customer adoption for AI and hybrid multi-cloud initiatives contributed to momentum

Company press release: ID:nBw7FR4x1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.03 bln
$1.84 bln (16 Analysts)
Q1 Adjusted EPS
Beat
$2.58
$2.12 (18 Analysts)
Q1 EPS
 
$1.88
 
Q1 Net Income
 
$375 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for NetApp Inc is $180.00, about 1.7% below its September 1 closing price of $183.16
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
Sept 1 - Dell again lifts annual forecasts as AI demand powers record results
Sept 1 - Credo Technology Q1 revenue more than doubles on AI infrastructure demand; beats estimates
Sept 1 - Texas' halt on powering data centers reflects US reckoning over 'ghost' demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)